These relationships must be healthy. Sure, you can try to be all things and wear every hat. This will lead to certain disaster. Your key players must become familiar with your business model. Keep in mind, this list will change for various reasons. Don’t be afraid, to shift during your relationship building process.
Make a list of: Realtor, Inspectors, Contractors, Architects, Lenders, and Accountants you may know. If you have a mentor, or is part of an investment group, ask for any of their contacts to assist you develop your business model. This process should not take long. It’s a practical part to understanding the various roles. Key player will have in your business.
REALTORS – It’s the agent’s job to get you the best possible price for your home, or to see that you get the best possible deal on the property you want to buy. Agents are trained to negotiate well, if only from experience. They know what normally works and what does not.
INSPECTORS – Hired by the buyer, an inspector surveys the house for non-functioning systems, damages, and repairs that may be needed. His detailed report forms the basis for continuing with the purchase, renegotiating the sale price, allowing the seller to make repairs, or for pulling out of the sale.
CONTRACTOR – A general contractor provides all the material, labor, equipment (such as engineering vehicles and tools) and services necessary for the construction of the project. A general contractor often hires specialized subcontractors to perform all or portions of the construction work.
SUBCONTRACTOR – A subcontractor will perform all or part of the obligations of the contractor’s contract. Depending on the Subcontractor Agreement, they may be responsible for providing their own materials and equipment for the task they are hired for. If contractors are the managers, subcontractors are the workers.
ARCHITECT – Architects in construction play an important role and they are responsible for the visual appearance of the buildings and structures before final structural design. Architect is a person appointed by the client, who develops a facility as per the design concept and the requirements specified by the client.
LENDER – A true Mortgage Banker is a lender that is large enough to originate loans and create pools of loans which they sell directly to Fannie Mae, Freddie Mac, Gennie Mae, jumbo loan investors, and others. Any company that does this is a mortgage banker. They can vary in size.
ACCOUNTANT – To help their clients or employers, real estate accountants prepare financial records and reports for a variety of real estate transactions, which can include property-sales, rentals, leases, and time-sharing. Reports may include items such as development expenses, operational costs, and profits.